Telecom Argentina S.A. Fundamental Analysis
Telecom Argentina S.A. Fundamental Analysis
Telecom Argentina S.A. (TEO) shows moderate financial fundamentals with a PE ratio of 21.61, profit margin of 4.17%, and ROE of 5.46%. The company generates $9040.7B in annual revenue with strong year-over-year growth of 92.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze TEO's fundamental strength across five key dimensions:
Efficiency Score
WeakTEO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentTEO trades at attractive valuation levels.
Growth Score
ModerateTEO shows steady but slowing expansion.
Financial Health Score
ModerateTEO shows balanced financial health with some risks.
Profitability Score
WeakTEO struggles to sustain strong margins.
Key Financial Metrics
Is TEO Expensive or Cheap?
P/E Ratio
TEO trades at 21.61 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, TEO's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Telecom Argentina S.A. at 1.01 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.89 times EBITDA. This is generally considered low.
How Well Does TEO Make Money?
Net Profit Margin
For every $100 in sales, Telecom Argentina S.A. keeps $4.17 as profit after all expenses.
Operating Margin
Core operations generate 7.37 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.46 in profit for every $100 of shareholder equity.
ROA
Telecom Argentina S.A. generates $2.06 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Telecom Argentina S.A. produces operating cash flow of $1.75T, showing steady but balanced cash generation.
Free Cash Flow
Telecom Argentina S.A. produces free cash flow of $535.91B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1244.17 in free cash annually.
FCF Yield
TEO converts 6.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
21.61
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.007
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.73
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How TEO Stacks Against Its Sector Peers
| Metric | TEO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 21.61 | 24.20 | Better (Cheaper) |
| ROE | 5.46% | 959.00% | Weak |
| Net Margin | 4.17% | -68674.00% (disorted) | Weak |
| Debt/Equity | 0.73 | 3.02 | Strong (Low Leverage) |
| Current Ratio | 0.58 | 1.71 | Weak Liquidity |
| ROA | 2.06% | -2558.00% (disorted) | Weak |
TEO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Telecom Argentina S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
796.88%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
-911.76%
Industry Style: Growth, Technology, Streaming
DecliningFCF CAGR
536.82%
Industry Style: Growth, Technology, Streaming
High Growth